PM Report: IMF, Markets, Fuel-Efficiency

5/17/2011 5:20PM

The International Monetary Fund ponders its next move with its chief in jail facing indictment on Friday. Plus, stocks struggle on disappointing housing data and an outlook warning from Hewlett-Packard. Plus, fuel-efficiency imported from Europe.

This transcript has been automatically generated and may not be 100% accurate.

Gou ... growing pressure on the head of the IMF and the whites and Ralph Whitehead in New York bought back and fall much more ... right have right now on the New Saab good afternoon and welcome I'm Simon Constable is choose this dented wanna help me ... through the show thanks ... for joining us not that coming at us go straight down a Washington was Sudeep Reddy is standing by ... and and so they tell us about that the pressure ... that some Dominique Strauss Kahn is on the right now I'm basically in the privilege partially Malaysia go or not ... desert sand there certainly leaders in Europe were starting to raise ... the issue of whether he should resign it's un clear ... whether he was able to get that message to him directly ... so far but there's certainly ... a lot of movement ... both died in Europe and in Washington to try to figure out ... what the next steps would be a lot of people talking about succession already ... it's pretty clear that ... Strauss Kahn is not going to come back into the job anytime soon he said ... Brinker's I went through ... Friday which is Export day ... and age even if he is granted bail his defense attorney ... in court on Monday suggested that he would ... be willing to stay with his daughter in New York City so ... it does look like it did it look back on to the job in Washington ... answer no ... the IMF executive board which represents the hundred eighty seven member countries ... their release they seem to be waiting until Friday when there were ... reports they're really hoping that you'll just at the site to spare them ... the tough decision ... of whether to force it out on a somewhat BZ NetEase is think about when that evidence is that it will disappear basically double decoupling a resolution to this and I and and I know we say he's under pressure but the IMF itself is under pressure to the need to act ... the need to be ready with some of the fill and it ... even if this is an interim basis ... until they give ... DSK an opportunity to clear its name or not ... um you know so ... that the IMF is under pressure ... considering what's the IMF is doing right now in Europe this job is a hard job right now ... very much ... in the news that's coming on the firm's today to send this is a critical role lineup because the fiscal crisis that some countries in Europe ... on the go and what not to be about the pigs Portugal Italy Mylan's Greece ... and spine particularly race but I know one rich one is too much truck with every one of ... the giant banks and Spain ... um ... I might overstating the situation as the day ... yes I mean for of for most of the six decades the IMF was really ... if the leadership was really more about a ... a technocratic culture to keep things moving ... not so much the political leadership ... that Strauss Kahn said demonstrated here it's always elevated the profile of the IMF DaVita's role ... ADI dealing with countries in crisis ... that he's been in some cases ... the clue keeping ... the European coalition together to push forward with the rescues ... of ... Greece and ... Portugal and Ireland in not ... just coming up with ... with the money because of these bubble money is coming from others in Europe but it didn't push forward and make sure ... things move ahead on track maybe ... a little too much for was given to somebody European countries ... that are now faced fiscal crises but ... I we are where we aren't so ... too are given that its data where we are in this crisis and the risk of contagion ... you need a strong leader there to make sure he can ... carry forward the plan ... let me ask ... you what happens if we don't have strong leadership in time out what happens in Europe that of ... all I think there's gonna be a lot of uncertainty in terms of what these countries that are taking IMF trader who may need IMF ... aid ... who are going to be dealing with what kind of policy that interview dealing with ... the IMF is not a welfare program for Europe the IMF is very top line vessel caught on right now is that people in ... Invista reputation offshore ... that the money comes with a lot of strings attached I think the austerity program increase is probably the best example ... to the IMF lend you money but it's not like us thank you get your mortgage for nothing ... United have any common on you and you have to actually come up with a financial plan ... can work to be approved in the progress ... today a lot of people I talk to a basically Sam agrees cannot get out of its come as ... we now basically defaulting on its debts and even if it's not cool that this would not restructure a Department of payments by him and what's not to be a default ... if that's messed up what happens to the Russell well ... well he if Greece is forced to restructure its own four which is the seating increasingly likely that a lot of effects on the other European countries ... yet the Bank ... of Ireland Portugal Spain ... in particular ... you gotta get somebody and a strong leader to step in ... to its deal with those situations as well so ... if I if this doesn't go as planned ... of the year and you're facing some difficult the extra time ... if your veins in his position even if he's not ... actually operating at best this is a distraction for the IMF that can and I met for the world is going to create ... objects that stood out the processes to deal with all its problems does anyone on the rise of it I mean it may be too early to jump into that spot ... other students of speculation this is this job is to putting gone to a European bank or ... do think that there's any chance that they may bring in someone ... um maybe from an emerging market economy ... to be the head of the Imam with a risk something like that are given the role the IMF right now ... there's obviously a lot more pressure to allow something like that take place ... the Americans don't want to give up their Number two slot the Europeans don't want to give up their number one slot ... and together they have that the voting shares the IMF ... to atone ... for four G majority so ... don't feel really see ... other than the outside pressure from emerging markets any of that happening ... but as this gets drawn out until ... I was the Europeans are able to results but didn't get their candidate ... I moved its position ... relative to what we've ... been now it's increasingly likely that emerging markets will be of the ... eye and east of ... present have some serious ... candidates for consideration ... Michelle was still see soon enough thank you very much sitting ready ... with a Wall Street down Washington DC weeks on mounted a mock its ocean water Laura month ARO with MarketWatch in ... sentences go I'm lor up ... markets that seemed probable that some youths outlook double that of a war was going on ... I think the economic data had at the bell when it was with me to Catalan thought we had that lowered Forecaster case he was really not that blue-chip stocks shares but ... with the housing third falling whenever think derided that industrial output ... the week it was just more of that of last month's economic data we've seen ... that before and then ... people I love the way that ... on the Nasdaq ended up with an acidic shops and a mom and and Davis ... it's looking like a slowdown some aided still crying thesis O'Brien economy but the singles full production that is ... typically a very cyclical part of the economy when it's not slowing down ... the rest the Comi follows on my right yet that's why ... earlier we had a report just a few weeks ago that manufacturing look like it was on the uptick ... in U S and was part of the job support Conservancy hiring in that area ... now all the sudden were saying that this is slowing down ... and once again you're seeing this the section in the market ... to get a little bit of a database ... that the market seems to be getting ahead of itself of all that ... in the week it's something that throws a wrench in the mobile going nowhere cuts and jobless claims numbers that were ... but higher than I think people look at the ends's The was the right but I believe ... and now we have this up now we have this industrial number ... plus you have done the housing was Charles well that's right and then in the earnings on top of the giving HP talking about are coming out it dearly because because of the negative forecast ... and then you have to sort of this general is not good for some report exit ... over this can be sluggish again well we keep ... we keep hearing that this could be sluggish but the market sometimes gets in well ahead of this so I'm ... lor up ... but what Monet's is that when you hear from the people you talk to train as an investor is when you're out when you reporting on markets ... we have a little man and that no and terms refer to the morale was down one is not a great time to be the ... architect of the whole fell on they added it's all about but all the money we went to the jeff last year where ... there was that cooling and some of the Number three thiopental strengthened ... and brown wheat ... flour in a lot of friends ... and we knew that with that we were getting another big ... stimulus from the Fed and that that everything up again ... must remain really I mean I and and that adding to the worry that ... will eat into without the flight ... yet with the QE three ... by planting mines in the island of Excelon and I think that if the market does ... keep going up in a limited because of ... strong for data that will actually get something ... to suggest that we're going faster ... or sometimes the Israelis are built on the fact that the that that that they're just rallies rallies ... for fuel themselves and that ... everybody seems to me by and suddenly you've got all this competence without doing anything under one point one nine ... does fill in Egypt when I was that the housing just looks was most of what we've never had a sustained economic recovery in the post cycle mobile period without a recovery in housing ... design basically mean ... it's gonna be in limbo and Niemiec ... all four sluggish video calling growth ... going for rental housing zones around was to be convenience you know ... what ... I just don't think that's ... people of Khaner forgotten housing Amenas much aside as much as for your senses ... or or traditional economic thought would tell you now that people are wrapped up in the in the value that homes are to welcome the value of their homes ... we've seen this rally getting stronger even though the housing data keeps looking worse and worse ... so I'm ... I don't know maybe maybe at some point it does begin to pull on on non on stocks overall ... but but right now I ... it doesn't seem to be correlate ... doesn't it doesn't it's on the Dolphins into the colony app ... TheFind cab Laura month ARO foreign much thank you Laura com When Rublin a move on I went thank you Laura month ARO with MarketWatch and Sanford's as go to Markets Turkeye reports ... Kamall MarketWatch Stock com in the meantime ... fuel fed up with the aid of sky-high gas price any Busby thing um audit of the gas pump or relief is on the way ... in the fall of more fuel efficient cars a boy from Europe grounding of all as some on some other citrus Joe White joins us now from Washington DC ... job ... my mother has a fuel efficient aren't in Europe turbodiesel sixty miles to the Dow know any of that ... you're getting something closer to that of a one-time European carmakers cheaply here in one tree car makers to serve the forbid frugal corner of the cars like the one you're describing ... but he's great he's won just get these ... are astronomical mileage ... figures ... um they kept them over there because our guesses to achieve our regulations were friendly but I'd technology ... of all those circumstances are changing and so ... the European car makers the one tree car makers ... are are ... very carefully starting to bring more of that technology over ... why so carefully and it would seem to do was send to me that ... as gasoline prices ... go up he will be coming in the door to save some money ... well you know and it didn't may be too careful ... but I think that the Eurogeek in this market ... European luxury cars sold are horsepower and technology speed and force our speed ... of ... but now they think that that some of their customers are willing to at least consider a different approach ... its overseas presence to offer six cylinder diesel U S clasps their ... top line ... up of sedan for the first time since nineteen ninety six ... there also offer a four cylinder engine in the C class so for a western entry level model here in United States ... but there are going to go so far as to bring ... their their Compaq European models a class for instance the United States ... so they're there they're going at it carefully to ... see how that its customers react ... and if ... customers want more ... it may well bring more diesel diesel demand has been high balls with that right ... David Ian Rush on a diesel cars ... well ... gas prices they hope or singer but then you know the reality is is that working out just talking about Mercedes Benz BMW kiddies or does early cars here in the US on Financial ... well ... there is that all ... but done ... it also American you know if it does indeed in a month suddenly you know if oil drops another ten fifteen dollars ... and some the gas prices are down around three dollars gallon again ... when ... you know the fuel efficient BMW when you get the one with the high horsepower ... and all the bells and whistles that Joe was talking about ... and I think that's the risk for auto makers ... to bring this technology overhear gas prices go down all the sudden you're stuck with old Synthes were cars that people don't really want to view them on the job that's a great great great point from dated but they still have the styling like that that that's pretty cool into my doubts the bounce that run and walk the walk out to start the styling and and and and it's bright and that that's why they're being careful ... they need to say look not only did get efficiency which also can our industry say is an upper stages bring over these ... eight cylinder engines which are smaller in displacement than the ones that have now ... but there but they and their more efficient ... but there also this is our full of some of the variants will go above five hundred words are so it's a balancing act ... the second thing that is that ... that that disconnecting between the market forces and regulatory forces ... the regulatory force in this country is going toward higher and higher mpg ... and and so to an extent ... that the car makers all have to respond to that ... even as they tear their hair out over gasoline going up down up down ... a consumer demand ... chasing that you go in for the bigger vehicles went down to smaller vehicles ones out ... Detroit guy working Americans in all this What whether they are rushing over to the dogs of the question ... well the Americans are playing this game is well are they they are not just as impressively pre over Gisel bid for there to be or European operations because that they're just very weary ... diesel costs are really happen though that should be of consulting work well ... for the American companies are absolutely witness it again they're going to smaller displacement ... are going to turbo charging as a way of losing both power and efficiency forties doing it GM is doing ... they're all moving in this direction ... because they get the regulatory Bush is consistent in the market is not ... while it ... sooner rather than later and why ... now and so they have to start you know if you get in this game you don't think today which are going to have three or four years of growth ... I don't play out time activities Alcon AMP arena TI and handed him right on the winding roads of your open and take Numico spot on ... Tamaki a few of you tomorrow or the price of gasoline and other bubble tea ... say OK coming and thank you Brian much ... Joe White with a Wall Street down Washington D C and didn't want a small state tyranny over the paper ahead ... from big story on there about sunny chief of ... Corstens Aulnay outside a ... basically cybercrime being a pic from check that with this at home on digits you will not wanna miss that ... in the meantime that's it ... that's our show that's the new supper tonight comeback eight thirty